American companies operating factories in China now face mounting challenges as the trade conflict between Beijing and Washington intensifies, according to the Financial Times.
Corporations such as Apple and Tesla must first pay a 125% tariff to import American raw materials and components into China. They then face an additional 145% tariff on the value of finished products when exporting them back to the US.
Beyond the tech giants, a wide range of smaller American businesses also struggle under the weight of these tariffs. Several firms from third countries find themselves affected too, as they rely on American components to assemble goods in China for the US market.
In 2024, foreign-invested companies in China imported goods worth $820 billion and exported goods valued at $1 trillion.
The trade confrontation between the US and China escalated sharply in April. President Donald Trump first imposed a 34% additional tariff on Chinese imports. In response, China introduced its own countermeasures. Trump later raised the tariffs step by step, ultimately reaching 145%.
